Are investors expecting too much from rental growth?

PROPERTY

clock • 5 min read

With an interest rate rise being forecast within months, Hardeep Tawakley asks property managers if the party is over for the sector.

The UK real estate sector has grown rapidly over the past two years, but with the Bank of England Governor, Mark Carney, last week admitting his ‘personal view’ is rates could rise sooner rather than later, should investors be more cautious? Many investors have flocked to the property sector over the past 12 months to take advantage of the yields on offer, especially as bonds and equities have rallied in recent months, and investors have sought alternative forms of income. According to the Investment Property Databank, the UK commercial property sector returned 10.5% in 2013, with cap...

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